Shem Bajura Bagiene, the company’s founder.
Uganda’s real estate industry has undergone significant changes over the past few decades, evolving from a largely informal sector to one that is increasingly professionalised and regulated. Amidst this transformation, Bageine and Company Limited has emerged as a leader, setting benchmarks for excellence and innovation.
Located on the 10th floor of the Interservice Towers on Lumumba Avenue in Nakasero, the offices of Bageine and Company Limited exude an air of professionalism and warmth. From the moment you step into the sleek, modern reception area, the hospitality of the staff is palpable.
On a recent visit, I was struck by the courteousness of the employees, one of whom personally escorted me to the managing director’s office; a rare and thoughtful gesture that set the tone for my interaction with the company. This level of care and attention to detail is characteristic of the values that have propelled Bageine and Company Limited to the forefront of Uganda’s real estate industry.
At the helm of the company is Shem Sabiti Bageine, who took over the reins following his father’s retirement due to ill health. Shem Bajura Bagiene, the company’s founder, developed macular degeneration, a condition that impairs central vision, limiting his ability to actively manage the business. However, the elder Bageine, now 81, rests assured knowing that his legacy is in capable hands. Sabiti, armed with a bachelor’s degree in economics from Makerere University and a master’s in land management and development from the UK’s Reading University, has been with the company for 23 years, rising to become its managing director and senior partner.
Shem Sabiti Bagiene, took over the reins from his father.
A legacy rooted in experience
Bageine Senior’s journey in the real estate industry began in the 1980s in Nairobi, where he worked with Tysons, a property valuation and management firm. As the first qualified African at the European-owned company, he gained invaluable experience before co-founding his own firm, Bageine, Karanja Mbuu Limited, with Kenyan partners. His career took a pivotal turn when he returned to Uganda in 1987, following the country’s liberation in 1986. Leveraging his expertise, he established Bageine and Company Valuation Surveyors, which later evolved into Bagaine and Company Limited, one of Uganda’s leading real estate firms.
Sabiti, inspired by his father’s legacy, pursued advanced education to fill the large shoes left behind. “The transition from a valuation survey company to a full-fledged real estate venture was driven by the need to embrace professionalism and expand our services,” he explains. This shift allowed the company to diversify its offerings and cement its position as a key player in Uganda’s property market.
Offering excellent services
Perhaps the most enduring aspect of Bageine’s success is its leadership. From its founder’s pioneering work in the 1980s to Sabiti’s strategic vision today, the company has been guided by a clear sense of purpose and a commitment to excellence. This legacy of leadership has not only sustained the business but also inspired a new generation of real estate professionals in Uganda.
The firm offers a wide range of services, including estate agency, property management, property development consultancy, and site acquisition. The company also assists tenants in negotiating favourable lease terms, manages facilities, and handles marketing and promotion for properties. Over the past 34 years, the firm has managed numerous office buildings, residential properties, and development projects for both local and international clients.
Some of the notable commercial buildings under their management include UDB Towers, National Insurance Building, National Social Security House, Church House, Mapeera House, and Nakawa Business Park, all of which boast a 100 percent occupancy rate. Other significant properties include Posta Uganda, UAP Building, Interservice Towers, Workers House, Communication House, and The Wildlife Towers. These landmarks stand as testaments to the company’s expertise and commitment to excellence.
Sabiti proudly notes that many of these clients have learnt from Bagaine’s management practices and now self-manage their properties.
“While it is a good thing that they have gained the capacity to manage their own assets, it also means we have lost some business,” he says with a smile. “But that is the nature of the industry; it is contract-based, and competition is fierce.”
Navigating challenges in a growing industry
While the residential sector thrives, the commercial real estate segment has seen slower growth. According to Sabiti, the demand for office space has not significantly increased since the early 2000s. Sabiti highlights the high cost of finance and construction as major barriers to growth in the commercial office space segment.
“The demand for office space has not grown significantly since 2001, and the cost of investment is a limiting factor,” he says.
Commercial banks in Uganda charge interest rates ranging from 15 to 25 percent annually, making it difficult for developers to secure affordable financing. Sabiti argues that government intervention is needed to address these challenges and create a more conducive environment for real estate investment.
Another issue is the influx of unprofessional players in the industry. Sabiti emphasises the importance of regulation to maintain standards and protect both investors and consumers. He applauds recent legislative developments, such as the Estate Agency Act and the Tenant/Landlord Act of 2022, which have introduced international best practices and clarified the relationship between landlords and tenants.
The evolution of real estate in Uganda
Reflecting on the industry’s evolution, Sabiti distinguishes between growth and transformation. “Growth refers to an increase in the number of buildings and developments, while transformation involves a fundamental change in how business is conducted,” he says.
He points to the adoption of explicit service charge systems as an example of transformation.
“In the past, landlords would charge a single figure for rent, covering all costs. Today, tenants are increasingly aware of the need for transparency in service charges, which cover cleaning, security, maintenance, and other operational expenses,” Sabiti explains.
However, he notes that the commercial office space segment has not seen significant transformation. “In Kampala, there are only a handful of large commercial office blocks that have been developed in the last 25 years,” he says. “The rest are medium-sized buildings, and a few towers remain incomplete.”
Advice for aspiring entrepreneurs
As Uganda’s real estate industry continues to evolve, companies like Bageine and Company Limited will play a crucial role in shaping its future. Sabiti remains optimistic about the sector’s prospects, citing population growth and urbanisation as key drivers of demand. However, he also stresses the need for continued investment in infrastructure, regulatory reforms, and professional development to unlock the industry’s full potential. For those looking to enter the real estate industry, Sabiti emphasises the importance of consulting qualified professionals with experience in land management and development.
“We have been in the market for some time and can help you make informed decisions,” he says. He also encourages entrepreneurs to focus on residential developments, given the country’s growing population.
Sabiti advises newcomers to prioritise professionalism and adhere to industry standards. “Real estate is a long-term investment, and cutting corners will only lead to problems down the line,” he warns. “Take the time to understand the market, build relationships with experienced professionals, and invest in quality.”
As Bagaine and Company Limited looks to the future, Sabiti is focused on adapting to changing market dynamics while maintaining the company’s core values.
“We are constantly conducting market research and refining our systems to provide high-quality services at competitive rates,” he says.
He also highlights the importance of innovation in staying ahead of the competition. “We are exploring ways to integrate technology into our operations, from property management software to digital marketing strategies,” Sabiti reveals. “The goal is to enhance efficiency and deliver even greater value to our clients.”
Under Sabiti’s leadership, the company continues to build on its founder’s vision while navigating the challenges of a dynamic market.
A VISION FOR THE FUTURE
Sabit remains optimistic about the future of Uganda’s real estate industry. He attributes this optimism to the country’s positive population growth and limited land availability, which drive demand for residential and commercial properties. “As long as these factors remain in place, the outlook for the industry is very positive,” he says. He also praises the Condominium Property Act of 2002 for modernising the residential sector, enabling investors to venture into apartment developments in areas of Ntinda and Kira, among others. “This legislation has opened up opportunities for large-scale residential projects, particularly in the eastern axis of the city,” Sabiti explains.
